Page 5 - Condensed Interim Financial Statements For the nine months ended March 31, 2023

Directors’ Report

In the name of ALLAH, The Most Gracious, The Most Merciful
Assalam-u-Alaikum!
The Board takes pleasure in presenting a brief review of the operations and financial results of the Company for the
nine months ended March 31, 2023.
Financial Results
During the period, the Company has made a profit after tax of Rs. 30,588 million (March 31, 2022: Rs. 17,496
million), which is higher by 74.8 % as compared to the corresponding period last year. The profit translates into basic
and diluted earnings per share of Rs. 107.76 (March 31, 2022: Rs. 61.64). The increase in profit is mainly due to
increased sale value because of increase in rupee dollar parity, exchange gain on financial assets and increased
interest income due to higher deposits & interest rates netted off to some extent by increased exploration costs due
to dry wells cost charged to expenses, decrease in sales volumes of crude oil and gas in comparison to
corresponding period last year. Production volume of crude oil & gas decreased by 8.9%, and 9.2% respectively in
comparison to corresponding period last year. During the period, the Company made a Consolidated profit after tax
of Rs. 30,930 million (March 31, 2022: Rs. 18,796 million) which translate into consolidated earnings per share of
Rs. 108.87 (March 31, 2022: Rs 66.17).
Production
The following is a comparison of production from the Company's own fields, including proportionate share from all
operated and non-operated joint ventures:
Nine months ended
Mar. 31, 2023 Mar. 31, 2022
Crude Oil US Barrels 1,404,507 1,542,722
Gas Million Cubic Feet 17,901 19,730
LPG Metric Tonnes 40,699 42,162
Sulphur Metric Tonnes 465 380
Solvent Oil US Barrels 13,274 13,354
The Company's share in production, including that from joint ventures, for the period under review averaged 5,126
barrels per day (bpd) of crude, 65.35 million standard cubic feet per day (mmscfd) of gas, 148.52 metric tonnes per
day (MTD) of LPG, 1.7 MTD of sulphur and 48 bpd of solvent oil.
EXPLORATION AND DEVELOPMENT ACTIVITIES
Producing Fields
At Balkassar lease (100% owned by POL), Balkassar Deep-1A has been spuded on April 26, 2023 as a
replacement of Balkassar Deep-1. Correspondence with the Government is in progress for the renewal of
Balkassar Development & Production Lease.
At Pindori lease (operated by POL with a 35% share), 3D seismic acquisition project of 60 square kilometers has
been completed and data processing is in progress to evaluate the prospectivity of Chorgali formation and to
evaluate the possibility to produce un-drained oil.
At Tal block, (operated by MOL, where POL has a pre-commerciality share of 25%), Makori East-5 sidetrack has
been approved for the up-dip location.
Tolanj West-2 a developed well drilled down to target depth tested three formations, Lamshiwal formation flowed
12.7 million cubic feet of gas per day, 11.3 barrels of oil per day and 9.2 barrels of water per day at 32/64” choke size
at flowing well head pressure of 1,914 psi, Lockhart Formation tested and produced 8.3 million cubic feet of gas per
day, 34 barrels of oil per day with no water at 32/64” choke size at flowing wellhead pressure of 1,285 psi and
Samanasuk & Shinawari formations flowed 2.25 million cubic feet of gas per day, oil nil, water nil with well head
flowing pressure of 374 psi at 32/64” choke size. Production from this well has been started and currently producing
around 13.8 million cubic feet of gas per day and around 15 barrels of oil per day.
At Adhi field (operated by Pakistan Petroleum Limited, where POL has 11% share), Adhi South-7 has been spuded
on April 14, 2022 drilled down to its target depth, initial testing results were 500 barrels of oil per day and 0.5 million
cubic feet of gas per day at 28/64” choke size with flowing well head pressure of 360 psi. Presently this well has
been connected to the production line and producing around 400 barrels of condensate and 0.6 million cubic feet of
gas per day.
03